On Tuesday, July 16th, Walmart opened a distribution center in Lancaster, TX to handle fresh produce, eggs, dairy and frozen goods for delivery to 590 locations in Texas and others beyond the state. The 730,000 square foot DC dedicated to perishables complements an existing fulfillment center opened in 2023.
The design of the facility and its equipment expedites assembly of pallets for stores optimizing trailer capacity and quick turnaround at delivery. The Lancaster, TX facility is the second of five distribution centers dedicated to perishables opened by Walmart. Additional locations will be placed in Welford, SC, Belvedere, IL., and Piles Grove, NJ. Four additional distribution centers handling perishables will be expanded in Minnesota, North Carolina, Indiana and Tennessee.
Over the past decade, Walmart has invested in advanced technology, both as mechanical and digital innovations to reduce the cost of distribution and to expedite deliveries. The question arises as to whether Walmart has achieved the same level of efficiency at a capital cost that may be lower than the Ocado concept followed by the Kroger Company